Key Takeaways
- • Assets managed by India's mid-sized and large family offices could rise about 50% to around Rs 1.05 lakh crore over the next three years, from an estimated Rs 70,000 crore in 2024, according to a report by Julius Baer and EY.
- • Alternative investments account for 40-45% of some family office portfolios, though only about 12% of Indian family offices allocated 20-30% to alternatives in 2024, with that proportion projected to reach around 25%.
- • The number of family offices in India is estimated to have grown from about 45 in 2018 to nearly 300 in 2024-25, most of them single-family offices, and no separate regulatory framework governs them.
- • Family offices are increasingly making direct investments and negotiating co-investment rights to gain control and potentially reduce fees paid to fund managers.
- • Over $1.3 trillion to $1.5 trillion of wealth is expected to pass between generations over the next decade, driving demand for professional investment, governance and succession capabilities.
Summary
Assets managed by India's mid-sized and large family offices could rise by about 50% to around Rs 1.05 lakh crore over the next three years, from an estimated Rs 70,000 crore in 2024, as wealthy business families increase allocations to startups, private equity and private credit, according to a report released by Julius Baer and EY. Family offices manage the investments, tax affairs, succession planning and philanthropic activities of wealthy families. The number of such offices in India is estimated to have risen from around 45 in 2018 to nearly 300 in 2024-25. Most are single-family offices, and comprehensive data remains unavailable because India does not have a separate regulatory framework governing them.
The growth has been driven largely by promoters monetising wealth through IPOs, private equity exits and business sales. Rather than reinvesting all proceeds in their core businesses, families are building diversified portfolios. Traditionally concentrated in listed equities, fixed deposits, bonds, real estate and gold, these portfolios are shifting toward private equity, venture capital, private credit, and funds investing in real estate and infrastructure.
The report said alternative investments now account for 40-45% of some family office portfolios at the aggressive end, but the shift remains uneven. Only about 12% of Indian family offices allocated 20-30% of their portfolios to alternatives in 2024, a proportion that could rise to around 25% in the coming years. Family offices are also increasingly investing directly in companies or negotiating co-investment rights, which allow them to invest alongside private equity or venture capital funds while potentially lowering fees. Artificial intelligence, climate technology, renewable energy, semiconductors, electronics manufacturing, cloud services and data centres are among the sectors attracting this capital.
Surabhi Marwah, tax partner and leader of family office advisory services at EY India, said Indian family offices are "evolving from wealth preservation vehicles into active allocators of long-term capital," a shift that is bringing greater focus on governance, succession planning and professional management. India has more than 19,000 individuals with assets exceeding $30 million, a number projected to cross 25,000 by 2031. The changing profile is prompting families to hire professional investment heads, finance executives and risk specialists, while expansion into overseas and illiquid assets is increasing the need for stronger systems around succession, taxation, cybersecurity and regulatory compliance.
The growth has been driven largely by promoters monetising wealth through IPOs, private equity exits and business sales. Rather than reinvesting all proceeds in their core businesses, families are building diversified portfolios. Traditionally concentrated in listed equities, fixed deposits, bonds, real estate and gold, these portfolios are shifting toward private equity, venture capital, private credit, and funds investing in real estate and infrastructure.
The report said alternative investments now account for 40-45% of some family office portfolios at the aggressive end, but the shift remains uneven. Only about 12% of Indian family offices allocated 20-30% of their portfolios to alternatives in 2024, a proportion that could rise to around 25% in the coming years. Family offices are also increasingly investing directly in companies or negotiating co-investment rights, which allow them to invest alongside private equity or venture capital funds while potentially lowering fees. Artificial intelligence, climate technology, renewable energy, semiconductors, electronics manufacturing, cloud services and data centres are among the sectors attracting this capital.
Surabhi Marwah, tax partner and leader of family office advisory services at EY India, said Indian family offices are "evolving from wealth preservation vehicles into active allocators of long-term capital," a shift that is bringing greater focus on governance, succession planning and professional management. India has more than 19,000 individuals with assets exceeding $30 million, a number projected to cross 25,000 by 2031. The changing profile is prompting families to hire professional investment heads, finance executives and risk specialists, while expansion into overseas and illiquid assets is increasing the need for stronger systems around succession, taxation, cybersecurity and regulatory compliance.
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